First Quarter 2024 Revenue $75 Million,
Operating Income of $19 Million
Net Loss Margin of 12.5% and Adjusted EBITDA
Margin of 41.9%
Grindr Inc. (NYSE: GRND), the premiere LGBTQ+ social connector,
today posted its financial results for the first fiscal quarter
ended March 31, 2024 in a Letter to Shareholders. The Letter to
Shareholders can be accessed on Grindr’s Investor Relations
website.
“Grindr is off to an outstanding start to 2024, highlighted by
revenue growth of 35% year-over-year and strong margins in our
first quarter,” said George Arison, Grindr’s Chief Executive
Officer. “Results were excellent across the business. We’re making
good progress on our strategic priorities for the year, highlighted
by our product roadmap with two new products in development built
with user intent in mind. We are excited about the opportunities
ahead in 2024 and beyond as we execute on our long-term vision to
build the ‘Global Gayborhood in Your Pocket’.”
Earnings Webcast Information
Grindr will host a live webcast today at 2:00 p.m. Pacific Time
to discuss the Company’s first quarter 2024 financial results. The
webcast of the conference call can be accessed as follows:
Event: Grindr First Quarter 2024 Earnings Conference Call
Date: Thursday, May 9, 2024
Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)
Live Webcast Site: https://investors.grindr.com/
An archived webcast of the conference call will also be
accessible on Grindr’s Investor Relations page,
https://investors.grindr.com.
Forward Looking
Statements
This press release contains statements that may constitute as
forward-looking statements within the meaning of the federal
securities laws. Forward-looking statements relate to expectations,
beliefs, projections, future plans and strategies, anticipated
events or trends and similar expressions concerning matters that
are not historical facts. These forward-looking statements include
statements regarding our intentions, beliefs, current expectations
or projections concerning, among other things, results of
operations, financial condition, liquidity, prospects, growth,
strategies and the markets in which we operate. In some cases, you
can identify these forward-looking statements by the use of
terminology such as “anticipates,” “approximately,” “believes,”
“continues,” “could,” “estimates,” “expects,” “intends,” “may,”
“outlook,” “plans,” “potential,” “predicts,” “seeks,” “should,”
“upcoming,” “will” or the negative version of these words or other
comparable words or phrases.
The forward-looking statements, including statements regarding
strategic priorities, product roadmap, new products and long term
vision, reflect our current views about our business and future
events and are subject to numerous known and unknown risks,
uncertainties, assumptions and changes in circumstances that may
cause actual results to differ materially from those expressed in
any forward-looking statement. There are no guarantees that any
transactions or events described will happen as described (or that
they will happen at all). The following factors, among others,
could cause actual results and future events to differ materially
from those set forth in or contemplated by the forward-looking
statements:
- our ability to retain existing users and add new users;
- the impact of the regulatory environment and complexities with
compliance related to such environment, including maintaining
compliance with privacy, data protection, and user safety laws and
regulations;
- our ability to address privacy concerns and protect systems and
infrastructure from cyber-attacks and prevent unauthorized data
access;
- our success in retaining or recruiting our directors, officers,
key employees, or other key personnel, and our success in managing
any changes in such roles;
- our ability to respond to general economic conditions;
- competition in the dating and social networking products and
services industry;
- our ability to adapt to changes in technology and user
preferences in a timely and cost-effective manner;
- our dependence on the integrity of third-party systems and
infrastructure;
- our ability to protect our intellectual property rights from
unauthorized use by third parties;
- whether the concentration of our stock ownership and voting
power limits our stockholders’ ability to influence corporate
matters; and
- the effects of macroeconomic and geopolitical events on our
business, such as health epidemics, pandemics, natural disasters,
and wars or other regional conflicts.
In addition, statements that “Grindr believes” or “we believe”
and similar statements reflect our beliefs and opinions on the
relevant subjects as of the date of any such statement. These
statements are based upon information available to us as of the
date they are made, and while we believe such information forms a
reasonable basis for such statements, such information may be
limited or incomplete, and such statements should not be read to
indicate that we have conducted an exhaustive inquiry into, or
review of, all potentially available relevant information. These
statements are inherently uncertain and investors are cautioned not
to unduly rely upon these statements.
While forward-looking statements reflect our good faith beliefs,
they are not guarantees of future performance. Except to the extent
required by applicable law, we are under no obligation (and
expressly disclaim any such obligation) to update or revise our
forward-looking statements whether as a result of new information,
future events, or otherwise. For a further discussion of these and
other factors that could cause our future results, performance, or
transactions to differ significantly from those expressed in any
forward-looking statement, please see the section titled “Risk
Factors.” in annual reports on Form 10-K and quarterly reports on
Form 10-Q that we file with the Securities and Exchange Commission
from time to time. You should not place undue reliance on any
forward-looking statements, which are based only on information
currently available to us (or to third parties making the
forward-looking statements).
Non-GAAP Financial
Measures
We use Adjusted EBITDA and Adjusted EBITDA margin, which are
non-GAAP measures, to understand and evaluate our core operating
performance. These non-GAAP financial measures, which may differ
from similarly titled measures used by other companies, are
presented to enhance investors’ overall understanding of our
financial performance and should not be considered a substitute
for, or superior to, the financial information prepared and
presented in accordance with GAAP.
Adjusted EBITDA adjusts for the impact of items that we do not
consider indicative of the operational performance of our business.
We define Adjusted EBITDA as net income (loss) excluding income tax
provision; interest expense, net; depreciation and amortization;
stock-based compensation expense; transaction-related costs; gain
(loss) in fair value of warrant liability; and severance expense,
litigation-related costs, and other items, in each case that are
unrelated to our core ongoing business operations. Adjusted EBITDA
Margin is calculated by dividing Adjusted EBITDA for a period by
revenue for the same period.
Our management uses this measure internally to evaluate the
performance of our business and this measure is one of the primary
metrics by which management and other employees are compensated. We
exclude the above items as some are non-cash in nature and others
may not be representative of normal operating results. While we
believe that Adjusted EBITDA and Adjusted EBITDA Margin are useful
in evaluating our business, this information should be considered
as supplemental in nature and is not meant as a substitute for the
related financial information prepared and presented in accordance
with GAAP.
A reconciliation of net loss and net loss margin to Adjusted
EBITDA and Adjusted EBITDA margin for the three months ended March
31, 2024 and 2023 are presented below. We are not able to estimate
net income (loss) or net income (loss) margin on a forward-looking
basis or reconcile the guidance provided for Adjusted EBITDA margin
to net income (loss) margin on a forward-looking basis without
unreasonable efforts due to the variability and complexity with
respect to the charges excluded from Adjusted EBITDA margin. In
particular, the measures and effects of our stock-based
compensation related to equity grants and the gain (loss) on
changes in fair value of our warrant liability that, in each case,
are directly impacted by unpredictable fluctuations in our share
price. The variability of the above charges could have a
significant and potentially unpredictable impact on our future GAAP
financial results.
Three Months Ended
March 31,
($ in thousands)
2024
2023
Reconciliation of net loss to Adjusted
EBITDA
Net loss
$
(9,406
)
$
(32,899
)
Interest expense, net
7,185
10,793
Income tax provision
2,680
15,503
Depreciation and amortization
4,119
7,952
Litigation-related costs (1)
422
1,211
Stock-based compensation expense
7,869
3,341
Severance expense (2)
58
676
Change in fair value of warrant liability
(3)
18,680
15,317
Others (4)
—
105
Adjusted EBITDA
$
31,607
$
21,999
Revenue
$
75,345
$
55,809
Net loss margin
(12.5
)%
(58.9
)%
Adjusted EBITDA Margin
41.9
%
39.4
%
(1) Litigation-related costs primarily
represent external legal fees associated with the outstanding
litigation or regulatory matters, including fees incurred in
connection with the potential Norwegian Data Protection Authority
fine and employee unionization.
(2) Severance expense relates to severance
incurred for employees who elected not to relocate or participate
in our hybrid working model involving a multi-phase
return-to-office plan and other severance arrangements.
(3) Change in fair value of warrant liability
relates to our warrants that were remeasured as of March 31, 2024
due to the increase in our public warrant price since December 31,
2023.
(4) Other represents other costs that are
unrelated to our core ongoing business operations.
About Grindr Inc.
With more than 13.5 million monthly active users, Grindr has
grown to become the Global Gayborhood in Your Pocket, on a mission
to make a world where the lives of our global community are free,
equal, and just. Available in 190 countries and territories, Grindr
is often the primary way for its users to connect, express
themselves, and discover the world around them. Since 2015 Grindr
for Equality has advanced human rights, health, and safety for
millions of LGBTQ+ people in partnership with organizations in
every region of the world. Grindr has offices in West Hollywood,
the Bay Area, Chicago, and New York. The Grindr app is available on
the App Store and Google Play.
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